Economic effects of the ongoing Covid-19 pandemic that crippled the airline industry throughout 2020 and into 2020 continue to loom large…
JetSMART Confirms Ultra-Low-Cost Cargo Operations
During the pandemic, JetSMART has operated uninterruptedly and according to the latest report from the Civil Aeronautical Board, they reached a market share of 28.4% during the month of June, which represents the transportation of 31,810 passengers. The rest of the market is completed by LATAM with a 45.7% share, then SKY with 23.6%, and finally Aerovías DAP with a 2.3% stake.
According to ALLNEWS, during July, JetSMART increased its operations to 17 domestic routes, under a biosecurity standard of the highest international level. During the pandemic, the carrier has mobilized more than 129,000 passengers and a total of more than 6 million since it began operations in Chile.
As announced, the airline has recently announced its opening a new subsidiary in Peru. In addition, the Chilean carrier stated its entrance into cargo operations. These two recent announcements could be possible due to the flexibility that the ULCC model gives, providing an opportunity to innovate and explore businesses that were not considered at the moment, diversifying the expansion plan and participation in the region.
In a recent declaration to the media due to JetSMART’s fourth anniversary, its CEO, Estuardo Ortiz, stated that cargo business has become more important during the COVID-19 pandemic. “We see opportunity in a market that in 2019 transported 34 thousand tons in domestic cargo and 365 thousand tons in international cargo operations. With a ULCC cargo model, we hope to offer another option to customers and take a share proportional to our operation,” he said.
Continuing, Mr. Ortiz said, “We already operated 4 of the 5 most important routes in South American: Santiago – Sao Paulo, Santiago – Lima, Santiago – Bogotá and Santiago – Buenos Aires. On Thursday, July 23, we already delivered the manuals and requirements to the DGAC and we hope to offer these cargo services soon.”
According to aero-naves, JetSMART is planning to operate between 40% and 45% of its capacity in the coming months. “Today’s restrictions have left us with a very limited segment. Still, we are operating at 35% of normal capacity. The domestic market continues to be a logical premise. The structure of the markets is not going to be the same as the pre-COVID-19 levels. A year from now, the network will be different with recovery with different progressions,” explains Estuardo Ortiz.
Highlighting the good tourist offer that Chile has, he anticipates that the recovery will begin in September as it is a more propitious time with the beginning of spring, the national holidays and also due to the gradual recovery of activity.
Currently, the Indigo Partners ULCC has 17 routes in service in Chile, flying from Santiago and operating interregional routes.
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